Red Cat Holdings (NASDAQ:RCAT) stock is flying higher on Monday thanks to subsidiary Teal Drones securing an order from a North Atlantic Treaty Organization (NATO) member.
This order is for 15 of the company’s Golden Eagle drones. It also covers spares and other units that will be used in training. The NATO member purchasing these drones intends to use them in Ukraine as its war with Russia continues.
Drones have been working well for Ukraine as the country uses them to perform reconnaissance. This gives its soldiers details on the location of Russian troops without placing its own soldiers in immediate danger.
Other drone companies, such as Draganfly (NASDAQ:DPRO) and AgEagle Aerial Systems (NYSEMKT:UAVS), have also seen recent gains due to the war between Ukraine and Russia. That comes as successful missions in the war increase interest in the technology.
George Matus, founder and CEO of Teal, said the following in the news release boosting RCAT stock.
“Drones in the category of the Golden Eagle can be among the most impactful technologies during a war, and there is significant need for drones in Ukraine to be used for reconnaissance purposes. We are now seeing small drones like the Golden Eagle helping to define the outcomes of wars such as what we’re experiencing now.”
The drone order news has RCAT stock seeing heavy trading today. As of this writing, more than 28 million shares of the stock have changed hands. That’s an impressive jump over its daily average trading volume of around 1.6 million shares.
RCAT stock is up 17.9% as of Monday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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